DID THE SAUDIS AND THE US COLLUDE
IN DROPPING OIL PRICES?
Here only extracts
The oil price drop, it really matters little, for the effect
is surely more important than the cause. Putin has already shown himself to be
a master player in the chess game of energy politics, so the suggestion that
sub-$60 oil will crush the Russian leader has to be met with a healthy degree
of skepticism.
Moscow’s decision on Dec. 1 to drop the $45-billion South
Stream natural gas pipeline project in favor of a new pipeline deal with Turkey
shows Putin’s willingness to circumvent European partners to continue
deliveries of natural gas to European countries that depend heavily on Russia
for its energy requirements.
The deal also puts Turkey squarely in the Russian energy
camp at a time when Russia has been alienated by the West.
As Oilprice.com commented on
Sunday, “ongoing projects are soldiering on and Russian oil output is projected
to remain unchanged
into 2015.”
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Yep you are right and
here's Michel Hudson. There is a transcript of this show.
http://vineyardsaker.blogspot.... Thanks WB and have a safe Holiday.
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So, demand for oil
was falling and the craven speculators could no longer support their chosen
base price. They backed away and prices fell accordingly. Following 2008 the
prices did not fall with falling demand because they were fixed and the global
economy did not recover in 2009. "Peak Oil" was the new reality, the
investor's safe haven. The US, like the old USSR, thinks that saying so makes
it so, but these people cannot create reality. They wallow in incompetence. If
the US has attempted to use oil as a weapon, they chose the worst time to
deploy it: creating oversupply in time of falling demand is just stupid. If
they inadvertently shut down the global economy, can we trust that these
geniuses will be able to get it started again? It's so much easier to destroy
than to build...
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"Russia has less
than $700 million in debt, the US has over $18 trillion; Russian debt is about
15% of GDP, the US runs at over 100% of GDP; Russia runs a budget surplus, the
US runs a burgeoning deficit; Russia has gold to back it currency, the US now
only has the military to back its fiat and increasingly widely shunned
“dollar;” Russia has the largest natural resources in the world, the US has
depleted or ruined most of its natural resources.
With which of these
two countries does the rest of the world want to conduct business?"
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RELATED ARTICLE
I
Call BS on Projections of a Decade of $20/Barrel Oil Posted
on December 24, 2014 by Charles Hugh Smith Here his conclusion:
7. Saudi Arabia and other major oil exporters derive a
significant percentage of their national incomes (public and private) from
investments in the global financial system–the same financial system that is
being destabilized by crashing oil prices.
The collapse in collateral and income is not limited to oil
exporters with marginally high costs–everyone with a stake in the
interconnected global financial system will suffer losses as the
financialized-oil trade unwinds violently and unpredictably.
8. The oil exporters’
ability to control a global financial meltdown triggered by crashing oil prices
is nil.
All of which is to say that the ability of oil exporters
to trigger a short-term collapse in price does not automatically translate into
an ability to control the financial conflagration such a crash ignites, or an ability to effortlessly maintain
oil at $20/barrel for years.
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